impact of trade marketing activities and salesmen behavior on customer satisfaction: the mediating...

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IMPACT OF TRADE MARKETING ACTIVITIES AND SALESMEN

BEHAVIOR ON CUSTOMER SATISFACTION: THE MEDIATING ROLE

OF SUPPLY UNCERTAINTY AND PRODUCT CONTAMINATION

Muhammad Khyzer Bin Dost

Superior University, Lahore, Pakistan (Corresponding Author, [email protected])

Prof. Dr. Ch. Abdual Rehman

Superior University, Lahore, Pakistan

Shahram Gilaninia Associate Professor , Department of Industrial Management

Islamic Azad University, Rasht Branch, Rasht, Iran

Muhammad Wasim Akram

PhD Scholar - Faculty of Management, Universiti Teknologi Malaysia

Najam ul Zia

Superior University, Lahore, Pakistan

Abstract With the monetary heightening of a nation and healthy life trends, the role of dairy product

manufacturing companies is too vital in this development. In a hyper-focused market of Pakistan,

organization involved in dairy business is confronted with difficulties of holding the current and

attracting the new customers. The purpose of the research is to take the opinions of distinctive

people groups in Lahore city of Pakistan about the salesman service and product quality in different

segments and classifications of the outlets. A sample of 500 retailers of the Lahore city is selected

on convenience basis. To accomplish the fundamental objective of the research, the researcher of

the paper created survey intended for dairy handler retailers. After a long analysis we have found

that four variables assuming critical part in order to make satisfied customer. In this manner,

customer satisfaction is the key for dairy companies to stay alive in competition. The purpose of

this study is to explain the relationship of trade marketing activities and salesmen behavior with

the customer satisfaction in packed milk industry of Pakistan. This is to find out about the trade

marketing activities which are more common and to explain the relationship of trade marketing

and salesmen behavior on customer satisfaction with the mediating role of supply uncertainty and

product contamination.

Key words: Salesman Behavior, Trade marketing, Product Contamination, Supply Uncertainty.

1. INTRODUCTION In today’s challenging environment, companies are totally based on customer retention because

customers are the key factors of companies’ success that is why customer satisfaction is playing

an important role to sustain competitive advantage in the market. It is extremely critical and vital

that organizations have the capacity to hold a devoted base of customers. Organizations perform

different activities in order to satisfy its customers. All the trade marketing activities including

POS promotions, sales promotions and category display are the budding segments where the

companies are investing now days. To accomplish and to enhance the business sector and benefit

mailto:[email protected]

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positions, organizations need to plan their techniques and approaches towards expanding customer

satisfaction levels (Mistry, 2013). More than 58 years ago, Hovland et al. (1957) introduced the

theory about satisfaction where it is considered that satisfaction is the variance between expected

and perceived performance. Organizations over the globe have recognized the centrality of

customer satisfaction and of creating and keeping up enduring association with their customers as

two vital parameters prompting expanded business benefits. In the meantime, a few organizations

are encountering rising level of retail customer dismay. Exploration proposes that customer

dissatisfaction is still the real reason of association customers' change to different organizations

(Manrai and Manrai, 2007).

The objective of this study is to explore the relationship of trade marketing activities and salesman

behavior with customer satisfaction through the lens of market orientation theory under the

mediating role of supply uncertainty and product contamination. Given study looks for exactly

based upon hypothetical and useful bits of knowledge into the contact connecting trade marketing

activities and salesman behavior for customer satisfaction. This is proposed that the in-store

activities and ethical behavior of front line salesman can ensure to achieve the desired level of

customer satisfaction. According to Community Dairy Development Program (Mumtaz, 2011) by

Tetra Pak, Pakistan is the fourth biggest milk maker in the world with a yearly production of more

than 33 billion liters of milk. There are more than 56 million cows and buffaloes and 10 million

smallholder cultivating families supplying more than 60 million consumers. In spite of the fact

that Pakistani producers have tough competition with producers from all around the world, the

dairy segment confronts various issues. Manufacturers of milk products are facing challenges in

meeting customer satisfaction. The quality of fresh milk supply to consumers has become doubtful.

Due to quality and supply uncertainty, the dairy industry of Pakistan is trending towards packed

milk supply rather than open raw milk. Product placement on shelves of different outlet channels

is the major confront which are facing by companies. Organizations need to control over supply

uncertainty and product contamination and counter these market challenges by offering best

marketing activities with the supporting role of expert and ethical salesmen.

1.1 Rationale of Study

Customer satisfaction has been considered the heart of victory in today’s highly competitive world

of organizations. It has a major contribution in sustainable profit growth of any organization.

Customer satisfaction has become the top key performance indicator for evaluating performance

of the organizations. It is the key to stay alive in competition (Saha et al., 2015). One of the goes

up against the organizations and private organizations confront however is to gauge buyers'

satisfaction in a steady manner, to altogether anticipate customers' buy expectations and business

acknowledgment of the items (Luan and Sudhir, 2010). The marketing activities which are

performed inside the stores involved shelf display, sales promotions and point of sales material.

These all are trade marketing activities which are performed to satisfy and attract the customers.

Point of sales promotion is an important trade marketing tool which has a direct impact on

purchasing behavior of consumers (Jones and Smith, 2011). Homburg et al. (2011a) found that

trade promotions like on pack coupons over trade increase sales volumes of the manufacturers.

These couponing schemes stimulate the repeat purchase of the products. A repeat sale always

occurs when a customer gets satisfied. This research was conducted by keeping whole sales price

unchanged and preventing stock piling activity from retailer side. Some of these assumptions can

be relaxed for future research examinations in more realistic conditions. Customer satisfaction has

become the top key performance indicator for evaluating performance of the organizations.

Similarly customer satisfaction is an important key performance indicator in tetra pack milk

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industry of Pakistan. Many researchers found the effects of trade marketing activities and sales

man behavior on customer satisfaction. But this area of study is still under research with mediating

of supply uncertainty and product contamination specifically in dairy industry of Pakistan. This

study fabricates a literature to formulate a theoretical system evaluating the customer satisfaction

as a potential source for new bits of knowledge. Although there is a huge amount of literature

exists on customer satisfaction but a limited literature has explained the customer satisfaction in

context of product contamination and supply uncertainty. The proposed research will help to

identify and fix the problems of retailers regarding supply uncertainty and product contamination.

1.2 Significance of Study

This study is conducted using theoretical lens of “Market Orientation Theory”. Although

many studies have been conducted with the help of this theoretical lens but still this is an

under research area.

This study will help the producers of dairy product to make policy which will help in

satisfying the customers.

The findings of this study will help the practitioners to gain the competitive advantage over

competition

The trade category managers will know the actual activities which are more effective in

changing customer behaviors. So they will choose those activities which are experienced

as more concentrated.

This study significantly gives direction in policy implications. Managers and directors at

all levels get benefits from findings of this study.

1.3 Research Aims & Objectives

1.3.1 Aim/Purpose

The main purpose of this study is to find the impact of trade marketing activities and

salesman behavior on customer satisfaction in milk industry by using lens of market

orientation theory under mediating effect of product contamination and supply uncertainty.

1.3.2 Objectives

To recognize the role of trade marketing activities and salesman behaviors in satisfying

customers of dairy industry.

To know the effect of supply uncertainty and product contamination on customer

satisfaction.

1.4 Research Question & Hypothesis

1.4.1 Research Main Question

Do the trade marketing activities and salesman behavior impact on customer satisfaction with

mediating effects of supply uncertainty and product contamination?

1.4.2 Sub Questions

Do trade marketing activities have a significant impact on customer satisfaction?

Do trade marketing activities have a significant impact on supply uncertainty?

Do trade marketing activities have a significant impact on product contamination?

Does salesman behavior have a significant impact on customer satisfaction?

Does salesman behavior have a significant impact on supply uncertainty?

Does salesman behavior have a significant impact on product contamination?

Does supply uncertainty have a significant impact on customer satisfaction?

Does product contamination have a significant impact on customer satisfaction?

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Does supply uncertainty mediate the relationship of trade marketing and customer

satisfaction?

Does supply uncertainty mediate the relationship of salesman behavior and customer

satisfaction?

1.5 Hypothesis

H1: There is a relationship between trade marketing activities and customer satisfaction.

H2: There is a relationship between trade marketing activities and product contamination.

H3: There is a relationship between trade marketing activities and supply uncertainty.

H4: There is a relationship between salesman behavior and customer satisfaction.

H5: There is a relationship between salesman behavior and product contamination.

H6: There is a relationship between salesman behavior and supply uncertainty.

H7: There is a relationship between product contamination and customer satisfaction.

H8: There is a relationship between supply uncertainty and customer satisfaction.

H9: Supply uncertainty mediates the relationship of trade marketing activities and customer

satisfaction.

H10: Product contamination mediates the relationship of salesman behavior and customer

satisfaction.

2. LITERATURE REVIEW 2.1 Theoretical Perspective

This study will utilize the market orientation theory to analyze the factors that affect the customer

satisfaction.

2.1.1 Market Orientation Theory

"The significance of the market orientation develop that surfaced in the field is basically

a more exact and operational perspective of the initial two mainstays of the marketing idea

customer center and facilitated marketing" (Kohli and Jaworski, 1990 p. 3).

Market orientation thinks that it is establishes in the marketing concept. Initially created and

enunciated in the 1950s and 1960s, the marketing concept holds that (an) all regions of the firm

ought to keep up a customer center, (b) every marketing activity ought to be composed, and (c)

that long haul benefits, not simply deals, ought to be the hierarchical objective. At the very heart

of the marketing concept is the thought of customer center, of which customer detecting (i.e., the

ID of customer needs) and customer satisfaction (i.e., giving products and administrations which

will satisfy the needs and needs of customers) are key components. Market orientation's

association with the marketing concept is genuinely direct. In particular, throughout the decades,

and as the marketing concept turned into a focal fundamental of marketing thought, the term

market orientation came to allude to the execution of the marketing concept (Lafferty and Hult

2001). Subsequently, a market oriented firm is one which has embraced the marketing concept

(Shapiro 1988; Kohli and Jaworski 1990). Despite the fact that this basic stage for characterizing

market orientation is not without its commentators, the truth of the matter is that the lion's share

of meanings of market orientation are profoundly implanted in the marketing concept.

The second approach which has additionally held a prevailing position in the marketing writing is

that of Narver and Slater (1990) whose beginning examination showed up in the October 1990

issue of the Journal of Marketing. In particular, Narver and Slater (1990) initially characterized

market orientation as "the way of life that most adequately and proficiently makes the essential

practices for the production of unrivaled worth for purchasers and, accordingly, ceaseless

predominant execution for the business". They then explained on this conceptualization by

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belligerence that market orientation comprises of five segments: customer orientation, competitor

orientation, between practical co appointment, a long haul center, and a benefit center. Narver and

Slater (1990) likewise gave a portrayal of their measuring instrument for market orientation. Over

the course of the years, various specialists, quick to test a wide mixed bag of hypothetical issues,

have embraced Narver and Slater's (1990) conceptualization and estimation methodology (Farrell

2000).

2.2 Customer satisfaction

In theory, more satisfaction should be joined with upgraded thing purchasing intentions or

steadfastness (Mittal & Kamakura, 2004), nonetheless, assessments found in normal business

segment test studies or audits are not by and large related with measures of procurement intention

or behavior. Examination recommends that fulfilled customer is a crucial essential for business

accomplishment (Crick and Spencer, 2011). Characteristics of product qualities that are presented

by affiliation focus the height of satisfying customer point (Khan & Afsheen, 2012). Customer

happiness can be segmented similarly as meeting the customers' longings to the degree parameters

connected with satisfaction (Malik & Ghaffor, 2012). Giese and Cote (2000) note that all

implications of customer satisfaction have three general parts: first part is a purchaser satisfaction

which is a reaction (vivacious or subjective), second part is the reaction relates to a specific center

(needs, thing, use experience, and so forward.), third part is the reaction happens at a specific time

(after utilization, after decision, in light of amassed experience, and so on.). Customer satisfaction

has been depicted as a positive excited state coming to fruition as an examination's consequence

of all parts of an association's working relationship with another firm (Anderson and Narus, 1984).

In the setting of relationship promoting, customer satisfaction is the way that prompts entire

arrangement customer support in light of the way that unsatisfied customers have high rate of

exchanging (Lin & Wu, 2011). As demonstrated by Zairi (2000) the finishes of accomplishing

inward needs is called satisfaction. If products or organization satisfies the needs and enthusiasm

of customer he will transform into a tried and true customer and thusly will incorporate customer

estimation of affiliation. Most of the scientists observed that administration quality is the ancestor

of customer satisfaction (Bedi, 2010). Mistry and Kumar (2013) in his examination paper found

that customers give most lifted centrality to reliability estimation. Inside of that quality estimation

they give more focus on how organizations fulfill their surety and how they indicate eagerness to

do work. From examination it was observed that a customer gives second centrality to

responsiveness of agents. It included distinctive criteria like, quickness in giving administration,

readiness to help customers and so on. Customer gives third inclination to certification variable, it

incorporate criteria like wellbeing of trade, consistency in administration and so forth.

2.3 Factors Influencing Trade Marketing Activities:

2.3.1 Sales Promotions:

Sales promotion is the key segment of marketing strategies for buyers' products and

services all around the world (Esfahani & Jafarzadeh, 2012).The study by Omotayo (2011)

expressed that customer have such a large number of decision like item size, shading, plan, quality

and cost and so forth., so producers ought to address the customers' issues and take choice to given

sales promotion on products and services. As indicated by Shahriar & Tahmores (2011), there is

no doubt that sales promotion has imperative part in this innovatively propelled world. The

supporter of brand advancing announces that sales promotions are a loathsome thing since they

don't add to the brand building required for future achievement and point of preference (Dawes

2004). The issue faced by most fast moving customer products (FMCG) supports, regardless, is

that they work in a space jumbled with sales promotions especially cost based promotions.

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Customers are scarcely to return to unique expenses after a nonstop refund period in diners (Yao

et al., 2014).The fragment of bundled shopper merchandise spends around $176 billion on

exchange promotions yearly (Kantar Retail, 2010). This constitutes around 56 percent of the entire

total spent on an extensive variety of promotions (Kantar Retail, 2010). Prior composing (Poddar

and Donthu 2011) proposes, on the other hand, that the exchange promotion extent is really under

examination, especially contrasted and its offer in the general publicizing blend spending plan

arrangement

2.3.2 Point of Sale Promotions:

Point of sale (POS), or point of procurement (POP), alludes to publicizing special materials at the

point where a buy will be made. POS advertising is seen as a key method for item advertisers, with

exploration demonstrating that 66% of all buys result from choices made while in the store, and

90% of retail location supervisors reviewed in the USA concurred that POS materials sell products

(Dibb et al. 2001). It is understood that buyers react all the more positively to advancements where

the premium is given at the season of sale and when the estimation of the premium is highlighted

(d’Astous and Jacob 2002), and value reductions that are encircled as giving "free" product options

are seen more positively than routine rebates (Chandra & Grewal, 2001).

2.3.3 Category Display:

Some research utilized value strategy to consider products location (Murray et al., 2010)

and investigated the item category allocation problem (Chen 2012). The past studies (Cardinali

and Bellini, 2014) demonstrate that the spatial competition between store groups (inter-format) is

turning out to be more extreme than the inside store configurations (intra-format). Cil (2012)

utilized purchasing affiliation estimations to make a matrix and connected the multi-dimensional

scale system to show an arrangement of products in store spaces.

2.4 Salesperson Behavior:

2.4.1 Ethical & Listening Behavior:

Moral sales promotion for customers assumes a huge part in business (Yusuf, 2010). At

the point when a salesperson's conduct is seen as moral, the organization is additionally seen as

moral (Lin 2012) and a salesperson with great ethics could set up a good organization with the

customer, consequently getting the consumer loyalty and trust (Alrubaiee, 2012).If the salesperson

gives right data, then the customer will feel more fulfilled by the service and the trust and

fulfillment will be trailed by listening in on others' conversations suggestions. Unethical sales

conduct as saw by the customer is portrayed as a short run salespersons direct that enables him/her

to pick up at the customer's expense (Alrubaiee 2012). There is neither an inside and out recognized

importance of business morals, nor a standard measure that allows an individual or event to be

reliably judged as good or corrupt (Chen, 2008).

2.4.2 Customer Orientation:

In today's focused offering environment, organizations are deliberately activating to set up

manageable points of interest in the commercial center through viable relationship advertising and

customer orientation techniques (Ramani and Kumar 2008). It is all around bolstered that customer

arranged practices assume a basic part in affecting purchaser view of trust in B2B sales cooperation

(Newell et al., 2011). Customer orientation is a bunch of benefits in sales which points on customer

needs and fulfillment considering these as the need of a salesperson (Drucker, 1994). Homburg et

al., (2011) define useful customer orientation as an arrangement of errand related practices went

for helping customers settle on agreeable purchase choices. A salesperson's customer orientation

concentrates on customer needs, the thought of customer hobbies by giving helpful customer

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arrangements, and the conclusion of sales through a communitarian treatment of any protests that

may be put by a customer (Homburg et al., 2011).

2.5 Supply Uncertainty:

The key impact of uncertainty on firm conduct is that uncertainty mists judgment and darkens

importance (Carson et al., 2006). In uncertain situations, firms dismiss their imminent future.

Consequently, given unpredictability and uncertainty in the nature and conduct of the

organization's outer surroundings (Carson et al., 2006), organizations are prone to settle on less

unconventional choices and take after more preservationist and wary practices (Bierly et al., 2014).

They may turn out to be less sure about the results of their conduct in the wake of problematic and

lamentable occasions in unverifiable situations. As an essential component of the uncertainty in

organization's surroundings, supply uncertainty alludes to the unconventionality and variability of

changes in and the general way of a company's supply chain (Elmaghraby 2000). It has noteworthy

ramifications on inputs, operations, and yields of supply chain operations. Case in point, supplier

business dangers, creation limit unpredictability in the supply market, quality, and conveyance

issues, and changes in innovation and item outline could be seen as significant wellsprings of

supply uncertainty (Zsidisin et al., 2000). They could tie up firm assets and debilitate the endeavors

of accomplishing strength through inventive conduct. Firms working in an uncertain environment

could pick conservative activities, for example, buffering and spanning (Bode et al. 2011) and take

after a sit back and watch strategy. Two or three studies investigate the estimation of supply

information. Some of these consider circumstances where information, for instance, era yield,

available supplier utmost, and lead time, is imparted forward in the supply chain to the objective

that customers can diminish supply uncertainty (Altug and Muharremoglu 2011). Another kind of

supply uncertainty develops in close circle supply chains, where there may be uncertainty

concerning the sum, quality, and timing of thing returns.

2.6 Product Contamination:

Surfaces of apparatus utilized for treatment of sustenance and refreshment are commonly ruined

by microorganisms, despite in the wake of cleaning and sterilization procedure (Marouani et al.,

2010). These polluting microorganisms show up as follower microorganisms or as more whimsical

structures called biofilms. A biofilm is portrayed as a sessile microbial social event delineated by

security to an in number surface and by generation of a framework that conceals the bacterial cells

and merges extracellular polysaccharides (EPSs), proteins and DNA (Bjarnsholt et al., 2008).

Adherent spores and creatures, and besides biofilms, can be seen on every surface of sustenance

industry plants, for example, stainless steel surfaces, floors, belts, or adaptable seals (Kumar and

Anand 1998). Understanding Biofilms is a basic supply of microbial sullying that has gotten to be

generally little thought in the dairy business is the microbial biofilm. In milk stockpiling and dairy

get prepared operations, and in like manner in diverse other present day frameworks, other than

being available in the harsh material, most microorganisms are joined with surfaces (Mittelman

1998). The relationship of "starting" microorganisms with following progress of biofilms in milk

taking care of circumstances is a potential wellspring of pollution of completed items that may

abbreviate the time of sensible usability or enable transmission of ailments (Palmer et al., 2010).

2.7 THEORETICAL FRAMEWORK

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3. RESEARCH METHODOLOGY For this study, the deductive methodology is chosen in which we are going to confirm that trade

marketing activities and salesman behavior will fundamentally affect the customer satisfaction. So

the most suitable methodology for this study is deductive methodology in which analyst means to

Customer

Satisfaction

Supply

Uncertainty

Product

Contamination

Sales Promotion

POS Promotion

Category Display

Ethical

Behavior

Listening

Behavior

Customer

Orientatio

Salesman

Behavior

Trade

Marketing

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test the pre-set suppositions. And, positivism is picked as philosophical approach to check

hypothesis by gathering the data from respondents.

3.1 Research Methods

This study will utilize the quantitative strategy on the grounds that researchers have expected that

trade marketing instruments and salesman behavior have critical effect on customer satisfaction

with mediating part of product contamination and supply uncertainty in dairy industry of Pakistan

and at whatever point analysts’ mean to test or confirm a study, quantitative technique is useful

and prompted system.

3.2 Sample

Consequently 500 people were come to (that were retailers of dairy handlers and were requested

to fill the reviews) out of which 391 respondents have completed their surveys and returned back

to the producer. For this study, respondents were picked by applying a testing method which is

known as 'convenience examining'. Surveys were hand passed on to those respondents and were

assembled after the productive satisfaction by the respondents.

3.3 Respondent rate Accomplishment rate of these structures were 78.2% as these structures were filled absolutely. 391

surveys were gotten pull out of 500 which is genuinely a not all that awful number and mirror a

reality of respondents to address the issue determined in the examination's objective.

3.4 Data collection

To accomplish the goal of this examination, a review structure was planned containing 45

statements to check the opinion of retailers of dairy handler outlets. With the assistance of that

questionnaire, researchers have gathered the perspective of representatives particularly concerning

the effect of trade marketing instruments and salesman behavior and mediating part of supply

uncertainty and product contamination on customer satisfaction.

3.5 Data Presentation

Study used Principal Component Analysis (PCA) on each variables (sales promotion, POS

material, category display, ethical behavior, listening behavior, empathic listening, customer

orientation, supply uncertainty, product contamination, customer satisfaction). Construct validity

(Convergent and discriminate validity), handling plant examination was used utilizing Principal

Component Analysis (PCA) with varimax turn procedure. The purpose behind KMO and Barlett's

test of sphericity is to look at that whether the data is suitable for component examination. KMO

Measure of test adequacy decides the nature of relationship however the Bartlett's Test of

Sphericity Chi-square implies the orthogonality of parts of a develop Assembling plant

examination is used to accumulate the tremendous number of things into minimal number of things

of uncorrelated variables to revise the comprehension of many-sided wonders. In the present study

incorporates nine intentional variables i.e. POS promotion, category display, Sales promotion,

ethical behavior, sympathetic listening, supply uncertainty, product contamination and customer

satisfaction. Measured variables are shown in squares and inactive in circles. The variables are in

like manner isolated in two exogenous and Endogenous variables. The beginning stage in directing

SEM is to set up a relationship between picked Endogenous and Exogenous variables by building

up the relationship with the help of single and twofold head jolts. The exogenous variables are

shown in Circles and Endogenous variables are exhibited in squares as indicated by the essential

of AMOS (Analysis of Moment Structures) programming.

4 .DATA ANALYSIS

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Table 1 Demographic profile of respondents

Respondent Demographics Frequency %

Age (N = 391)

25-30

31-35

36-40

41-45

46-50

51 years and above

27

42

38

60

75

149

7

11

10

15

19

38

Gender (N = 391)

Male

Female

391

0

100

0

Income(N=391)

PKR. 30,000 – PKR. 50,000

PKR. 51,000 – PKR. 70,000

PKR. 71,000 – PKR. 100,000

PKR. 101,000 and Above

123

220

15

33

31

56

4

9

Qualification (N = 391)

Under Graduation

Graduation

Masters

Mphil

PHD

292

84

05

0

0

75

23

2

0

0

Shop Classification(N=391)

Departmental Store

General Store

Bakery

Pan shop

Patro Marts

124

236

14

9

8

32

60

4

2

2

Source: own calculation using IBM SPSS Statistics 20.0

Table 1 shows that out of 391 respondents, the age of 27(7%) respondents are between 25-30,

42(11%) within 31-35, 38(10%) within 36-40, 60(15%) within 41-45, 75(19%) within 46-50 and

149(38%) are above than 51 years age. All respondents are males. The income of 123(31%)

respondents falls between 30,000 to 50,000, 220(56%) respondents from 51,000 to 70,000,

15(4%) from 71,000 to 100,000 and 33(9%) respondents earn 101,000 and above income. The

above table shows that 292(75%) respondents are undergraduate, 84(23%) graduate and only

5(2%) respondents hold master’s degree. 124(32%) respondents are from departmental store,

236(60%) general store, 14(4%) bakery, 9(2%) pan shop and 8(2%) from petro marts.

Table 2 Reliability of Measurement

Constructs N Number of

Items

Cronbach’s

alpha

Category Display 391 5 0.958

POS Promotion 391 5 0.930

Sales Promotion 391 5 0.824

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Empathetic Listening 391 5 0.791

Ethical Behavior 391 5 0.870

Customer Orientation 391 5 0.810

Product Contamination 391 5 0.920

Supply Uncertainty 391 5 0.731

Customer Satisfaction 391 5 0.777

Over all 391 45 0.821


The above table demonstrates the unwavering quality of every measure of the questionnaire. For

the given specimen Cronbach's Coefficient alpha differs from .731 to .958. Category display with

95%, POS promotion with 93%, sales promotion with 82%, empathetic promotion with 79%,

ethical behavior with 87%, customer orientation with 81%, product contamination with 92%,

supply uncertainty with 73% and customer satisfaction with 77%. The high Cronbach's alpha

worth for every build infers that they are inside reliable. The general reliability of questionnaire is

82.1%.

Table 3 KMO and Bartlett’s Test

Constructs No of

items

KMO Measure of

Sample adequacy

Bartlett’s Test

of Sphericity

Chi-Square

Bartlett’s Test

of Sphericity

Significance

Category Display 5 .862 3351 0.000

POS Promotion 5 .947 5384 0.000

Sales Promotion 5 .892 2458 0.000

Listening Behavior 5 .858 1384 0.000

Ethical Behavior 5 .665 612 0.000

Customer

Orientation

5 .896 4295 0.000

Product

Contamination

5 .879 5167 0.000

Supply

Uncertainty

5 .947 5384 0.000

Customer

Satisfaction

5 .789 1821 0.000


The estimation of KMO=0.5 is poor, KMO=0.6 is satisfactory and KMO=1 is more suitable for

component investigation. On the other hand, Hutcheson and Sofroniou (1999) further explain that

(KMO=0.5 and 0.7) considered as inadmissible and (KMO=0.7, 0.8), (KMO=0.8 and 0.9)

considered as acceptable where as quality over 0.9 is considered as outright impeccable

Goldberger et al., (2004). Taking into account Goldberger et al. (2004) it is delighted from table 4

that estimation of KMO for every construct is well above adequate level of 0.6. KMO = 0.862 for

category display, KMO = 0.947 for POS promotion, KMO =0.892 for sales promotion, KMO

=0.858 for listening behavior, KMO =0.665 for ethical behavior, KMO =0.896 for customer

orientation, KMO 0.879 for product contamination, KMO =0.947 for supply uncertainty, KMO

=0.789 for customer satisfaction which demonstrates that it merits conducting variable

investigation for the situation of the present information

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Table 4 Eigen values and total variance explained

Constructs

Components

Initial Eigenvalues

Total

% of

variance

explained

Cumulative

% of variance

explained

Category Display Comp 1 3.426 68.522 68.522

POS Promotion Comp 1 2.521 63.770 63.770

Sales Promotion Comp 1 2.432 71.335 71.335

Empathetic Listening Comp 1 8.341 73.641 73.641

Ethical Behavior Comp 1 3.931 77.432 77.432

Customer

Orientation

Comp 1 4.677 45.743 45.743

Product

Contamination

Comp 1 3.152 72.029 72.029

Supply Uncertainty Comp 1 2.764 86.164 86.164

Customer

Satisfaction

Comp 1 5.837 63.250 63.250


The above table contains all Eigenvalues and additionally shows downright fluctuation explained

for the constructs. Stand out principal segment was extricated from each of the three constructs by

using the PCA extraction technique: CD (comprised of 5 things explaining 68.5% fluctuation), PP

(comprised of 5 things explaining 63.77% change), SP (comprised of 5 things explaining 71.33%

difference), EL (comprised of 5 things explaining 73.64% fluctuation), EB (comprised of 5 things

explaining 77.43% difference), CO (comprised of 5 things explaining 45.74% difference), PC

(comprised of 5 things explaining 72.02% fluctuation), SU (comprised of 5 things explaining

86.16% difference) and CS (comprised of 5 things explaining 63.25% fluctuation)

4.1 Factor Loadings

Table 5 Component Matrix

ITEMS COMPONENT

Salesperson’s active listening behavior

Salesperson asks probing questions 0.843

Salesperson asks continuing questions 0.891

Salesperson asks clarifying questions 0.848

Salesperson restates 0.854

Salesperson summarizes 0.719

Salesperson’s customer orientation

Salesperson helps out the shopkeeper 0714

Salesperson answers my questions 0.732

Salesperson tries to give me an accurate expectation of the product 0.859

Salesperson tries to influence me 0.815

Salesperson helps me in making a better decision 0.740

Salesperson’s ethical behavior

This salesperson is friendly and approachable 0.775

This salesperson is sincere. 0.789

This salesperson is honest 0.751

I feel very little risk when dealing with this salesperson. 0.889

13

I would purchase the offering of this salesman again 0.869

Sales promotion in Trade Marketing Activities

Sales promotion attract consumers 0.812

Contents of the sales promotion attract consumers 0.721

Color scheme of Sales promotion attracts viewers 0.752

Sales promotion provoke consumer to purchase 0.814

Advertisement slogan at the sales promotion creates attraction 0.831

POS promotion in Trade Marketing Activities

Merchandise arrangement is attractive 0.842

The presentation of merchandising is creative and unique. 0.753

Color coordination of POS creates an appealing store atmosphere 0.729

The POS offers useful and accurate information. 0.783

Store front spurs clients to enter the store 0.751

Category display in Trade Marketing Activities

Windows showcase is attractive to the point that it drives clients to the

store

0.821

Things are displayed discernibly to draw the clients' consideration 0.853

Items setting arrangement is attractive 0.861

Shelf space for the category is appropriately occupied. 0.869

Shelf is neatly arranged 0.810

Product Contamination

Microbial contamination is a problem. 0.785

I often find the contamination problem in the product 0.826

I face product contamination problem in most cases. 0.899

I very often test the product for contamination. 0.867

I very often use anti-contaminated steps to stop contamination. 0.789

Supply Uncertainty

The suppliers reliably meet our requirements 0.710

The suppliers produce materials with reliable quality. 0.789

We have broad inspection of incoming discriminating materials from

suppliers.

0.891

We have a high dismissal rate of incoming discriminating materials from

suppliers.

0.832

The volume of demand is hard to anticipate 0.865

Customer Satisfaction

Overall I am satisfied with the company. 0.781

Company staff always understands our needs. 0.743

It is easy to contact to the company representatives. 0.881

The company always putts our interests first. 0.894

Staff of the company has the ability to do the best for me. 0.872


According to Straub et al. (2004), the minimum worth for the loading of all things ought to be

greater than 0.40. For all develops (LB,CO,EB,SP,POS,CD,PC,SU and CS)) every single related

thing are stacked on only one principal segment with fluctuated variable loadings ranging from

0.710 to 0.891 as indicated in the table. The above outlined results fulfill the criteria of develop

legitimacy including both construct validity including both discriminant and convergent validity.

This implies that the gathered information from this specific instrument is legitimate.

14

4.2 SEM Model

Computation of degrees of freedom (Default model) changab;e

Number of distinct sample moments: 455

Number of distinct parameters to be estimated: 61

Degrees of freedom (455 - 61): 334

Path Diagram

Figure 1 (Path Diagram)

Source: an output of using AMOS 16.0

Interpretation:

With a specific end goal to apply SEM. the principal step is to add to the way examination by

using AMOS programming. The variables are demonstrated in circles and squares according to

necessity of programming. The above way outline demonstrates the relationship between latent

and measured variables. The way graph additionally demonstrates that Recursive simultaneous

model is connected to affirm our examination model.

Applying SAM

Category_Display

Sales_Promotion

POS_Promotion

Ethical_Behavior

Supply_Uncertainty

Product_Contamination

Customer_Satisfaction

Trade Marketing

Activities

Salesman

Behavior

Customer_Orientation

Active_Listening_Behavior

1

1

E21

E3

1

E41

E1

1

E8

1

E5

1

E61

E71

E9

1

E10

1

E11

1

15

Figure 2 (Recursive simultaneous model)


Interpretation: In the above figure 2, the regressions coefficients are shown with one headed jolts which depict

the conformity in consumer loyalty (dependent variable) in light of a unit change in mediating

variables (supply uncertainty and product contamination) in the vicinity of independent variables

(exchange marketing exercises and sales representative conduct)

Table 6 Regression Weights

Category_Display

Sales_Promotion

POS_Promotion

Ethical_Behavior

Supply_Uncertainty

Product_Contamination

Customer_Satisfaction

Trade Marketing

Activities

Salesman

Behavior

Customer_Orientation

Active_Listening_Behavior

.50

.54

1.00

1.00

1.13

.98

.23

-.05

-.25

.46

.11

.73

.14

.12

.73

E21

.69

E3

1

-.07

E41

1.07

E1

1

.56

E8

1.44

E5

1

.29

E61

.45

E71

.95

E9

1

.78

E10

1

.59

E11

1

16

Estimate S.E. C.R. P

Supply Uncertainty Trade Marketing Activities .230 .049 4.729 ***

Product Contamination Trade Marketing Activities -.052 .046 -1.125 .261

Product Contamination Salesman Behavior -.253 .073 -3.448 ***

Supply Uncertainty Salesman Behavior .455 .070 6.538 ***

Customer’s Satisfaction Trade Marketing Activities .106 .041 2.599 .009

Customer’s Satisfaction Salesman Behavior .727 .074 9.805 ***

Customer’s Satisfaction

Supply Uncertainty (in the presence of

trade marketing activities and salesman

behavior)

.141 .047 3.003 .003

Customer’s Satisfaction

Product Contamination (in the presence of

trade marketing activities and salesman

behavior)

.122 .042 2.929 .003


The above table (6) demonstrates the regression values with their P-values for conceivable

acknowledgment or dismissal of Null-hypothesis. In the above table estimate value demonstrates

the adjustment in dependent variables because of unit change in independent variable while P

qualities help us to accept or reject the hypothesis. For this situation every one of the 7 hypothesis

are good i.e. there is sure and measurably noteworthy relationship in the middle of independent

and dependent variables at 1% level of centrality with the exception of product contamination and

customer satisfaction as their P-quality seems to be .261 which falls in rejection for invalid

hypothesis.

Table 7 Hypothesis Results

Hypothesis Comments

There is relationship between trade marketing

activities and customer satisfaction.

P-value (.009)

(.106) Regression Estimate

Rejected with 1% level of Sig


activities and product contamination.

P-value (.261)

(-.052) Regression Estimate

Rejected with 1% level of Sig


activities and supply uncertainty.

P-value (***)


Supported with 1% level of Sig

There is relationship between salesman

behavior and customer satisfaction.

P-value (***)




behavior and product contamination.

P-value (***)

(-.253) Regression Estimate



behavior and supply uncertainty.

P-value (***)



There is relationship between product

contamination and customer satisfaction.

P-value (.003)



There is relationship between supply

uncertainty and customer satisfaction.

P-value (.003)




17

4.3 Model Fit Summary

Table 8 CMIN (chi-square Min)

Model NPAR CMIN DF P CMIN/DF

Default model 23 139.602 22 .000 6.346


Rule: CMIN Minimum of discrepancy function; Smaller the batter

Interpretation: The above table demonstrates that default model have 23 perimeters with error

of 139.602with p value .000 which demonstrates that model is fit.

Table 9 Parsimony-Adjusted Measures

Model PRATIO PNFI PCFI

Default model .611 .535 .545


Rule:

PNFI (Parsimony-adjusted Normed Fit Index) 0=poor fit, close to 1= good

PCFI (Parsimony-adjusted Comparative Fit Index) 0=poor fit, close to 1= good

Interpretation: The above table demonstrates that default model have PNFI .535 and PCFI .545 which is more

noteworthy than .5 it shows model is normal good fit.

5. DISCUSSION After analyzing, the model shows the results that mediating variables i.e. supply uncertainty and

product contamination mediate the relationship of trade marketing activities and salesman

behavior with customer satisfaction. Supply uncertainty mediates customer satisfaction in the

presence of trade marketing activities (POS promotion, sales promotion and category display), if

supply uncertainty changes with one unit, customer satisfaction changes with 0.50 because of

supply uncertainty in the presence of trade marketing activities and salesman behavior.

Meanwhile, if product contamination changes with one unit, a change of -0.01 occurs in customer

satisfaction to trade marketing activities and salesman behavior. And there is statistically positive

relationship between supply uncertainty and product contamination and customer satisfaction.

This likewise underpins the thought that sales individual's service quality and customer satisfaction

is a social wonder and it must be grounded in a neighborhood social setting (Malhotra et al., 2005).

Results from this study demonstrate that customer orientation prompts more grounded

salesmanship abilities in salespeople, as they have higher level of learning around customer needs.

Findings demonstrate that a salesperson's customer orientation is predecessor to salesmanship

abilities and feeling regulation, and that these variables clarify some piece of the mediational

system through which customer salesman behavior impacts customer satisfaction. This proposal

is as opposed to a few contentions in writing. As said at the outset of this paper, the relationship

between a salesperson's customer orientation and execution has been recommended similar to a

direct straight one (Boles et al., 2001) to, all the more as of late, a curvilinear relationship

(Homburg, Muller and Klarmann, 2011). This study propels an option point of view on customer

18

orientation by proposing that the relationship between a salesperson's customer orientation and

customer satisfaction is best clarified through a mediational system. Late research has additionally

scrutinized the significance of customer orientation regarding its impact on results esteemed by

chiefs (Franke and Park, 2006). The finding that salespersons' behavior improves salesmanship

aptitudes and feeling regulation capacity bolsters the thought that behavior impacts sales execution

by upgrading a salesperson's fit with the requests and estimations of a sales work (Edwards, 1996).

With this line of thinking, this study proposes that behavior as a vital employment asset for the

salesperson is pertinent and has huge impact on execution results. Further examination concerning

word related and key drivers of behavior will reinforce this viewpoint (Dursun and Kilic, 2011).

The mediating variables (product contamination and supply uncertainty) effect the relationship of

trade marketing activities and sales man behavior with customer satisfaction. There is other thing

to be noted; when researchers took supply uncertainty and product contamination (mediating

variables) as independent and check the relationship between customer satisfaction (dependent

variable), the beta values (Estimate=0.50, -0.012 respectively) differ from main analysis which

support the analysis of mediation.

6. CONCLUSION & RECOMMENDATIONS 6.1 Conclusion

This Endeavor is directed to implore that what slants and parts have capacity to impact customer

satisfaction in the Tea-whitener and plain milk category handlers. Being a subjective investigation,

it was difficult to change the variables i.e. trade marketing exercises, salesman behavior, supply

uncertainty, product contamination and customer satisfaction. With the help of meticulously

sketched out self-administrated study, the investigator could get the obliged information and

concentrate the results with the help of latest quantifiable gadgets and procedures. Their eventual

outcomes of examination grew new substances before the specialist that variable like trade

marketing exercises and salesman behavior influence to be an essential settling to effect customer

satisfaction, besides, this variables exhibit the relationship mediating variables i.e. supply

uncertainty and product contamination. This needs thought of the concerned bodies that measures

are relied upon to take for the headway and begin among the retailers and customers. Examination

of the study directions to assume that trade marketing exercises and salesman behavior has a vital

impact on customer satisfaction, as examination of Saeed et al., (2011) showed there is a

discriminating impact of salesman behavior on customer satisfaction. The product contamination

seems, by all accounts, to be influencing the relationship of salesman behavior and customer

satisfaction. Pilkington and Chai (2008) upheld the significance of nature of products and

administrations on customer satisfaction and figured out that reliable customers for the most part

lie in category of customers who have utilized higher quality products. This suggests that better

nature of products tends to increment customers‟ steadfastness. Inquiries about by Chai and

partners (2009) demonstrate that nature of administrations to a customer is a standout amongst the

most vital elements in recognizing new customer needs and as we all know, the way to customer

satisfaction and faithfulness is furnishing the customers with their unfamiliar needs

6.2 Limitations and directions for further research

1. The examination is just led on retailer's perspective. The poll can be created for direct

customers to investigate the satisfaction level of direct shoppers too.

2. Further studies can likewise incorporate the variables like media promotion as autonomous

variable and merchant's business enthusiasm as interceding variables to definitely perceive

the customer buy expectations and satisfaction level.

19

3. Keeping in view the span of the populace the specimen size can be an inquiry for any

examines. The study is led in the center point of tea whitener purchaser and dairy

consumption point i.e. Lahore. While different urban communities particularly remote

territories are excluded in the exploration. Further specialists can incorporate the members

of differed urban communities to reach more precise discoveries and suggestions.

4. The study is directed in an invented set up with no impedance with the respondent with

close finished survey. Meeting routines can likewise use to further upgrade the legitimacy

and unwavering quality of the examination. The same number of shrouded estimations and

remarks can just be removed by testing into the issue through immediate and roundabout

inquiries of meetings.

5. Future scientists keeping in mind the end goal to build the more summed up results can

gather information from more urban areas and towns the nation over and contrast the

outcomes with get more profitable suggestions. The outcomes so accomplished will have

more substantial discoveries.

6. Another confinement of our examination is the survey method i.e. filling of the survey.

This strategy once in a while not able to give the genuine reaction the same number of

respondents just top off the poll without knowing the significance of the exploration and

understanding the significance of the inquiry. Along these lines meeting procedure has

ability to take care of this issue if not totally may be to some degree.

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